What happened

Shares of Vipshop Holdings (NYSE:VIPS) have plunged today, down by 11% as of 12:30 p.m. EST, after the company reported fiscal third-quarter earnings results. Shares jumped last week, but earnings are knocking them back down.

So what

Revenue in the third quarter rose 28% to $2.3 billion, which translated into non-GAAP net income of $84.1 million, or $0.14 per ADS. Gross profit increased by 19% to $526 million. Vipshop added three warehouses during the quarter in Taiyuan, Hohhot, and Hefei, China, and now has a total of 14 local warehouses.

Keyboard with red buttons for the Chinese flag and "sale"

Image source: Getty Images.

Active customers over the past year jumped 22% to 60.5 million, while total orders for the third quarter rose 23% to 74 million. Vipshop says that 8% of its orders were delivered through its proprietary last mile network. Average revenue per user increased 11%.

Now what

In a statement, CEO Eric Shen said:

We saw healthy growth in our total active customers for the trailing twelve months ended September 30, 2017, which increased to over 60 million. Importantly, our core categories continue to demonstrate robust growth, adding hundreds of domestic and international fashion brands to our portfolio in the past quarter. We remain committed to enriching our offering, including opening up our marketplace business, which will continue to improve our user experience.

CFO Donghao Yang noted that third-quarter sales came in at the high end of Vipshop's guidance. In terms of guidance for the fourth quarter, Vipshop expects sales to be in the range of 22.8 billion yuan to 23.8 billion yuan ($3.4 billion to $3.6 billion).